Silver BULL Announces Completion of Distribution of Arras Minerals Shares to Silver BULL Shareholders
September 27, 2021 OTCQB: SVBL, TSX: SVB
SILVER BULL ANNOUNCES COMPLETION OF DISTRIBUTION OF ARRAS
MINERALS SHARES TO SILVER BULL SHAREHOLDERS
Vancouver, British Columbia – Silver Bull Resources, Inc. (OTCQB: SVBL, TSX: SVB) ( “Silver Bull” or the
“Company”) is pleased to announce the completion of the previously announced distribution of shares
of Arras Minerals Corp. (“Arras”) to Silver Bull shareholders (the “Distribution”).
The Distribution was effective as of September 24, 2021. Pursuant to the Distribution, shareholders of
Silver Bull common stock as of September 10, 2021 were entitled to receive one common share of Arras
for each share of Silver Bull common stock held as of that date.
In connection with the Distribution, Silver Bull’s shareholders were issued a total of 34,547,838 common
shares of Arras, collectively representing approximately 84% of Arras, on a non-diluted basis. Silver Bull
continues to own approximately 4% of Arras, on a non-diluted basis. The remaining approximately 12%
of Arras is held by those who participated in Arras’ private placement in April 2021.
Registered Silver Bull shareholders holding physical share certificates or shares in book -entry form with
the Company’s transfer age nt (Olympia Trust Company ) were issued Arras shares in book -entry form.
Silver B ull shareholders who hold their shares of Silver Bull stock through a bank , broker or other
nominee had or will have their Arras shares credited to th eir accounts by their bank, broker or other
nominee. For questions relating to the transfer or mechanics of the Distribution, please contact Olympia
Trust Company by telephone at 1 -833-684-1546 (toll free in North America) or by online inquiry at
Arras is not currently listed on a public stock exchange but will report under the U.S. Securities Exchange
Act of 1934, as amended (the “Exchange Act”), as a non-U.S. company with foreign private issuer status.
The Arras shares distributed to Silv er Bull shareholders, though freely transferable in the United States,
may be illiquid until such time as the shares are listed or a trading market develop s, if at all. The
Distribution of Arras shares by Silver Bull constitutes a distribution of securities that is exempt from the
prospectus requirements of Canadian securities legislation. As such, t he first trade in Arras shares in
Canada will be a dist ribution for the purposes of Canadian securities laws and subject t o prospectus
requirements unless certain conditions are satisfied . Until such conditions are satisfied, Arras shares
may only be resold in Canada pursuant to an exemption fro m prospectus re quirements. Silver Bull
warrants and options will also be adjusted pursuant to the Distribution. For further details regarding the
Canadian resale restrictions on the Arras shares distributed by Silver Bull and the adjustments being
made to Silver Bull war rants and options in connection with the Distribution, please refer to the
Registration Statement on Form 20-F of Arras filed on September 1, 2021 with the U.S. Securities and
Exchange Commission (the “SEC”) on EDGAR at www.sec.gov/edgar (the “20-F”).
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Tax Implications
The following discussion is qualified in its ent irety by the discussion of tax matters set forth in the 20-F.
Silver Bull shareholders who were entitled to receive the Distribution of Arras s hares should make
reference to that discussion for further details regarding the tax consequences of the Distribution.
For U.S. federal income tax purposes, the receipt of Arras common shares by Silver Bull shareholders
should be treated as a distribution of property in a n amount equal to the fair market value of the
common shares r eceived. The Distribution of Arras common shares should be treated as dividend
income to the extent considered paid out of Silver Bull ’s current and accumulated earnings and pro fits.
Distributions in excess of Silver Bull ’s current and accumulate d earnings and profits will be treated as a
non-taxable return of capital to the extent of the holder ’s basis in its Silver Bull shares and thereafter as
capital gain. Silver Bull will no t be able to determine the amount of the Distribution that will be tr eated
as a dividend until after the close of the taxable year of the Distribution because its current year
earnings and profits will be calculated based on its income for the entire taxab le y ear in which the
Distribution occurs. However, based on current p rojections, it is reasonably expected that a portion of
the Distribution of Arras common shares should be treated as a return of capital rather than a dividend.
Silver Bull’s tax year -end is October 31, and as such, the Company expects to advise shareholders of
these determinations by no later than January 31, 2022.
For Canadian tax purposes, the Distribution of Arras shares is considered a dividend in kind on the Silver
Bull shares to shareholders resident in Canada. Such shareholders will be required to incl ude in
computing their income for a taxa tion year the amount of such dividend ( equal to the fair market value
of the Arras shares received). A dividend in kind of the Arras shares paid in respect of the Silver Bull
shares to a shareholder who is not a resi dent of Canada will not be subject to Ca nadian withholding tax
or other income tax under the Income Tax Act (Canada).
Management Focus
Silver Bull is continuing to focus on the Sierra Mojada asset and surrounding area in Mexico and
managing the joint venture option with South32. It continues to trade under the symbol “SVB” on the
TSX and “SVBL” on the OTCQB. The current management and board are remaining in place to cont inue
to run the Company.
Arras is focused on t he Beskauga deposit located in Kazakhstan along with additional exploration
licenses held or under application in the country. In addition, current Silver Bull m anagement and
directors have been appointed as management and directors of Arras, along with G. Wesley Carson as
an additional independent director.
Both companies remain headquartered in Vancouver.
On behalf of the Board of Directors
“Tim Barry”
Tim Barry, CPAusIMM
Chief Executive Officer, President and Director
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INVESTOR RELATIONS:
+1 604 687 5800 [email protected]
Cautionary note regarding forward look ing statements: This news release contains forward -looking statements regarding
future events and Silver B ull’s future results that are subject to the safe harbors created under the U.S. Private Securities
Litigation Reform Act of 1995, the Securities Act of 1933, as amended, and the Exchange Act, and app licable Canadian securities
laws. Forward-looking st atements include, among others, statements regarding the expected income tax consequences and
other aspects of the Distribution and expected management focus . These statements are based on curr ent expec tations,
estimates, forecasts, and pr ojections about Silver Bull ’s exploration projects, the industry in which Silver Bull operates and the
beliefs and assumptions of Silver Bul l’s management. W ords such as “expects,” “anticipates,” “targets,” “goals,” “projects,”
“intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions and
references to future periods, are intend ed to identify such forward-looking statements. Forward-looking statements are subject
to a number of assumptions, r isks and uncertainties, many of which are beyond our control, including such factors as whether
some or all of the expected benefits of th e Distribution will be achieved, the impact of the Distribution on Silver Bull
shareholders, whether management ’s focus will be as described in this news rel ease following the Distribution, the results of
exploration activities and whether the results c ontinue to support continued exploration activities, unexpected variations in ore
grade, types and metallurgy, volatility and level of commodit y prices, the ava ilability of sufficient future financing, and other
matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020
and our Qua rterly Report on Form 10 -Q for the interim perio ds ended January 31, 2021, April 30, 2021, and July 31, 2021 and
our othe r periodic and current reports filed w ith the SEC and available on www.sec.gov and with the Canadian securities
commissions available on www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future
performance and that actual results or developments may dif fer material ly from those expressed or implied in the forward -
looking statements. An y forward-looking statement made by us in this release is based only on informa tion currently available
to us and speaks only as of th e date on which it is made. We underta ke no obliga tion to publicly update any forward -looking
statement, whether written o r or al, that may be made from time to time, whether as a result of new informat ion, future
developments or otherwise.